Real Estate Developer, Myland Developments Limited (MDL) opened on 8 December and was oversubscribed in a matter of hours receiving 2,884 applications which resulted in an oversubscription rate of 6.7 times
The company offered only 6,250,000 ordinary voting shares to the general public via the IPO, which amounts to 17% of the company. The remaining 83% of shares are locked in for a period of 1 year from the date of listing ie: until 28th December 2022. Shares were offered at LKR 12 per share at the IPO
MDL IPO received a large number of retail applications, which caused an oversubscription rate of almost 4 times in the retail category and it also attracted applications from domestic institutions and high-net-worth individuals (HNWIs) which resulted the non-retail category to be oversubscribed nearly 10 times. Applications were also received by Unit Trusts which have minimum 500 unit holders, accordingly 625,000 shares were allotted to this categoory.
The Manager to the Issue was Atarah Capital Partners, which successfully listed Chrissworld PLC and EML Consultants Limited earlier this year.
The successful conclusion of MDL IPO makes it the first ever real estate sector player hailing from Gampaha District to be listed on the Colombo Stock Exchange, allowing the public to invest in companies having regional business presence. The real estate sector which usually has high demand from the domestic clientele, potentially Sri Lanka’s most promising sector for future growth.
Speaking about the conclusion of the IPO, Myland Developments Chairman and Independent Non-Executive Director Mr. Premachandra said: “It’s indeed an honour to lead MDL into the arena of raising capital through public equity issuances. This has allowed us to reduce the overdependence on Bank funding. The IPO paved the way for us to maintain a healthy capital structure in the future with both equity and debt capital.
MDL Managing Director Nalin Perera stated “I take this opportunity to thank all our new investors for placing their trust and belief in us and we look forward to having them on board.